ARK Invest expressed, in a recent report, the belief that the price of Bitcoin (BTC) could exceed one million dollars in the coming years and pointed out that the long-term opportunity for Bitcoin is getting better and better.
According to the report, Bitcoin’s unique features could offer people a way out of centralized monetary systems “that have failed to offer strong financial assurances.”
Going a step further, ARK Invest points out that four billion people live under authoritarian regimes, two billion people are forced to endure double-digit inflation, and one billion people are forced to waste much of their money paying commissions on remittances they rely on for a living.
As a “currency revolution”, ARK Invest highlights that BTC has proven to be resilient to scrutiny, inflation and crises, and transparent.
To highlight how useful it is, ARK Invest reported that in 2022 BTC recorded $38.7 trillion in transaction volume, representing over 36% of the total value of $105.3 trillion transferred since Bitcoin’s launch in 2009.
In terms of Bitcoin’s existing trend, ARK Invest believes that BTC may experience the worst decline in the cryptocurrency industry in 2022:
“In 2022, the capitulation of Bitcoin holders was similar to that at the lows of the previous cycle.”
Three price targets
Looking at the long-term potential of Bitcoin, ARK Invest presents three price targets for Bitcoin.
According to the report:
- The firm’s “bear case” scenario wants BTC to reach $258,500 by 2030
- The “base case” scenario sees BTC rising to $682,800 by 2030
- The “bull case” estimates that Bitcoin will “climb” to $1.48 million by 2030
Sources of new funds
ARK Invest presents eight markets that could be a source of new capital inflows for Bitcoin:
- corporate fund
- Corporate finance company; corporate capital fund; remittance asset
- a nation-state treasury
- emerging market currency
- financial settlement network
- asset resistant to seizure
- institutional investments
- digital gold
ARK Invest explained that the bear, base and bull scenarios will depend on the percentage of Bitcoin penetration in each of the above markets.
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